The three-part plan:
- “Creating two ‘pure-play’ companies with the scale, and the capital and cost structures to fully leverage their world-class franchises, iconic brands, and leading market positions”
- “Reducing costs significantly to ensure efficient operating structures for the two new companies”
- “Accelerating the pace of share repurchases to a total of $1 billion for the full year 2011 (approximately $540 million repurchased year to date)”
The two companies:
- McGraw-Hill Markets: It will include Standard & Poor’s credit ratings; S&P Indices; S&P Capital IQ; and Platts, its commodities markets business. Terry McGraw will be Chairman, President, and CEO. Management projects this company will generate around $4 billion of revenue in 2011.
- McGraw-Hill Education: It will focus on education services and digital learning. The board is currently looking for a CEO. Until then, Robert Bahash, the current president of hte education division will lead the business. Management projects this company will generate around $2.4 billion of revenue in 2011.
Goldman Sachs and Evercore Partners are advising the company.
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